ABK financial analysis H1-2018 November 18, 2018 analyzes the moderate performance of AL AHLI BANK OF KUWAIT (ABK) in the first half of 2018. Total assets grew by 25% to 26 billion EGP, driven by increases in treasury bill investments and customer loans. However, customer deposits also grew by 25% and the cost of deposits increased by 77% due to growth in demand deposits. While net interest income rose by 25%, issues around rising costs and asset quality pose challenges for the bank.

1. Page | 1 / 1 ABK financial analysis H1-2018 November 18, 2018
Financial analysis – AL AHLI BANK OF KUWAIT (ABK) H1 2018
Moderate performance, with an increased cost of funds, and issues in asset quality.
Assets
o Total assets grew by +5 Bn EGP (+25%) reaching 26 Bn EGP, growth derived by the increases investments in TBs +2.5
Bn EGP (+130%) reaching 4.5 Bn EGP (17% of TA), followed by the high growth in customer loans that grew by +2.9 Bn
EGP (+27%) reaching 14 Bn EGP (52% of TA).
o The Corporate loans grew by +1.9 Bn EGP (+25%) reaching 7.8 Bn EGP, derived by corporate direct loans that grew by
+1.4 Bn EGP (+67%) reaching 3.5 Bn EGP, the corporate debit current accounts represents 47% of TL reaching 3.8 Bn
EGP.
o The individual loans grew by +886 Mn EGP (+27%) reaching 4 Bn EGP derived by the high growth of personal loans
+879 Mn EGP (+29%) reaching 4 Bn EGP.
o Reallocating 126 Mn EGP of AFS investments to HTM.
o Improving asset quality by WRITING OFF NPLs for both individuals 15 Mn EGP (mainly in personal loans) and corporate
86 Mn EGP (mainly in direct corporate loans).
Liabilities
o Customer deposits grew by +4 Bn EGp (+25%) reaching 22 Bn EGP, derived by high growth in corporate deposits +3 Bn
EGP (+28%) reaching 13 Bn EGP (61% of TD).
o The demand/ TD & Call accounts derived the growth in deposits that led to cost of deposits increase by +393 Mn EGP
(+77%) reaching 901 Mn EGP
Income statement
o NII increased by +120 Mn EGP (+25%) reaching 480 Mn EGP, derived by the improved interest income from loans
portfolio that increased by +405 Mn EGP (+69%) reaching 996 Mn EGP. In addition to the increase in interest income
from treasury bills/ bonds by +68 Mn EGP (+54%) reaching 193 Mn EGP.
o Benefit from Impairment recovery amount of 43 Mn EGP mainly from corporate direct loans.
Source: Published financial statements.
1.0%
9.1%
9.57
84.9%
46.5%
29.8%
35.4%
62.3%
[Liquid A./T.A.]
[Liquid A./Deposits]
[Loans / Deposits]
ROAA
ROAE
Avg.T.A./ Avg Eqiuity
G&A/ Profit before Tax
N.Fees&Comm Inc/G&A